All roles above the senior vice president level will witness ‘very significant’ reduction in their annual bonus, according to the tech giant’s CEO.
Top executives at Google will be subjected to pay cuts this year as part of the company’s cost cutting measures, said CEO Sundar Pichai, with his statement coming in a meeting on Monday to address the ‘largest’ round of layoffs in the tech giant’s history.
All roles above the senior vice president level will witness ‘very significant’ reduction in their annual bonus. For senior roles, the compensation is linked to company performance,” Pichai was quoted as saying by Business Insider.
It is, however, not immediately clear just how big the Indian-born executive’s own pay cut will be. Also, the Mountain View-headquartered firm did not respond to requests from several publications for a comment.
Pichai’s announcement of salary reduction for senior executives, meanwhile, comes days after an announcement by his Apple counterpart, Tim Cook, that Cook will take a 40% lower compensation amid shareholder pressure. Then, last week, JPMorgan Chase said it is doing away with the ‘special award’ component of CEO Jamie Dimon’s salary.
Earlier this month, Alphabet Inc, the parent company of Google, announced it is laying off 6% of its workforce or around 12,000 employees. Explaining the decision to employees in a meeting on Tuesday, Pichai said those laid off were let go to avoid ‘much worse issues.’
The 50-year-old executive also said he had consulted the company’s founders, as well as board members, in deciding the layoffs.
